When it comes to investing, the earlier you start, the better off you’ll be further down the road. Justin Bieber and Paris Hilton both started investing (in their own ways) in their twenties and have accumulated a significant amount of wealth from doing so outside of being celebrities.
Now, you don’t have to be as well off as Bieber or Hilton to start investing, but you could get there if you start investing now and you invest smartly. Given how on fire the stock market is, you don’t want to be the one that gets left behind while everyone else gets rich. So if you want to start building your wealth now, follow these simple tips from us and other young investors like you who are already making bank.
1. Stocks Prices Too High For You? Invest Cheaply In Whatever Stocks You Want With Fractional Shares
Want to invest in companies like Apple or Amazon, but can’t afford to buy a whole stock in them? As @thestockbunny points out, with fractional shares, you can buy portions of whole stocks and ETFs for as cheap as a few dollars. “If there’s a company [whose stock] is worth $100, but you only want to put in $25, you will receive 1/4 of a share in that company. This is a great way to start investing, especially if you don’t have the capital to buy full shares of expensive stocks.”
With the investing app Stash, you can start investing with with as little as $5 thanks to its fractional shares offerings. It has thousands of stocks, ETFs and bonds to choose from to build your portfolio with. Plus, with its robust library of educational resources and personalized guidance along the way, you’ll gain all of the investing knowledge you need to invest on your own with confidence.
Stash has three subscription plans — Stash Beginner ($1/month), Stash Growth ($3/month) and Stash+ (9/month) — that all come with different features.
If you want to start investing and building wealth while on a tight budget, this is one of the best ways possible.
2. Get Professional Portfolio Management Without Paying A Penny For It With This Robo Advisor
If you’re thinking you’re more of a hands-off investor — meaning you want a professional to manage your portfolio for you — you’re going to need to get an investment advisor. But like @yourrichbff, points out “with human financial advisors, you’ll have a person dedicated to managing your money, but you’re going to pay a much larger fee — we’re talking like four 4X.” Don’t have money between bills and everything else to pay for a human advisor? Then a robo advisor is probably your best bet. Most are cheap or free and Acorns happens to be one of them.
It’s a free robo-advising investing app that selects and manages investment portfolios for its users.
- Acorns chooses a portfolio for you from its five pre-made portfolios (customized to risk tolerance) that were developed with help from Nobel Prize-winning economist, Dr. Harry Markowitz
- Each one is made up of ETFs that include a mix of stocks and bonds from multiple asset classes to help smooth out market changes and maximize returns
- When your portfolio moves with the market, Acorns will rebalance it to keep your portfolio on track to meet your goals
Acorns also specializes in helping its users invest their spare change, making it perfect for anyone looking to invest on a budget. Instead of making a lump sum deposit into your Acorns account, you can simply shop as you normally would with the Acorns Visa™ debit card or another linked card of your chose and use the app’s Round-Ups feature to round up your purchases to the nearest dollar. Your spare change will go towards your investing account and each time you save $5, it will automatically be invested for you according to your portfolio mix.
If you don’t have a lot of money but want to start investing, this app really does make it easy.
3. Get This Company's Help Throwing Small Amounts Of Money Over Time At Low Cost ETFs
ETFs are considered a good investment and @kxngjess_ explains why: “If you bought [only] Apple stock and Apple went bankrupt tomorrow, you would lose all of your money. But by owning an ETF, even if Apple went Bankrupt and out of business, you’d still have a hundred other companies that will keep your money safe. This will reduce your volatility and risk of losing money.”
The key takeaways here are that ETFs are low-cost, making them low-risk. They also hold a basket of stocks and other investment types, helping you diversify your portfolio and reduce the volatility that comes with having too much of the same stock in your portfolio all in one move.
Digit is an automated savings and investing app that will help you build a customized portfolio filled with ETFs and help you save money towards regular contributions to your investing account effortlessly.
Digit does this by finding the perfect amount of money you can afford to save everyday, pulling that small amount of money from your checking account into your Digit investment account — an amount so small you won’t even miss the money. That money will then automatically be invested for you into a portfolio made up of ETFs customized to your risk tolerance. Prioritizing your investments with regular automated contributions will do wonders for helping you grow your wealth faster.
You can try Digit for free for the first 30 days. After that, only pay $5 a month.
4. Give Yourself The Same Edge Over The Market As Wall Street Professionals
The stock market can seem like this big, complicated thing. It has a lot of moving parts and it can be hard to stay on top of all of them. No one expects you to become an expert on your own. You need to find reliable resources that you can use to educate yourself. After all, the more you know, the better your decision-making will be. We recommend signing up for Atom Finance.
It’s an investment research platform a lot of investors use to give them an edge over the market. It provides you with analysis tools and research data that historically only Wall Street professionals have had access to.
- Get access to cutting-edge analysis tools, news and other data for any company, sector, industry or topic, all in real-time
- Use the Stock Screener tool to screen the market for stocks that match your personal investment criteria
- Connect your portfolio to the platform to get an analysis of it and track all of your investments in one place in real-time
- Set up custom portfolio notifications so you can actively work to make adjustments to your portfolio when needed
- Use Atom’s chatroom feature to talk with other investors and get feedback on investment ideas
This platform will really give you a serious leg up so you can make strides in your investing early on. Sign up for Atom Finance for free today.
5. Get Free Reliable Investing Advice You Won't Need A Dictionary To Understand
Sure, publications like The Wall Street Journal and Bloomberg are good sources to learn about investing, but they’re pretty dense reads. If you want investing news and advice that’s not jargon-heavy and actually fun, check out The Money Manual’s TikTok. Our investment guru Sophia Randazzo is working hard to simplify all things investing while providing helpful financial tips.
The great thing about the rise of online brokerages and robo-advisors is that it’s much easier to get started in investing now than it’s ever been. You don’t need to have years of experience or be rich. You have access to all kinds of investments, research and analytical tools, and educational resources at the tip of your fingers. So stop waiting for the right time. Anytime is a good time to start investing and building wealth.
Feature Image: TikTok